Cobra Resources PLC (COBR.L) Drilling Programme Update

Cobra is an exploration and mining company focussed on the evaluation of the Wudinna Gold Project. With 6 tenements covering 1,928sqkm, Wudinna is located in the prime Central Gawler Craton Province (“CGC”) of South Australia.

The Gawler Craton has been home to some of the largest IOCG discoveries in Australia including Olympic Dam, as well as Prominent Hill and Carrapateena. Cobra’s Wudinna tenements contain extensive orogenic gold mineralisation and are characterised by potentially open-pitable, high grade gold intersections, with ready access to nearby infrastructure, as well as 4 potential IOCG targets.

Cobra currently has over 22 orogenic gold prospects, with grades of between 16g/t up to 37.4g/t outside of the current JORC resource, as well as 1 copper-gold prospect, and 4 IOCG targets. Leading edge multi-element geochemical analysis is being systematically applied to define the orientation and continuity of the mineralisation ahead of drilling, significantly reducing risk.

A version of this announcement including figures is available at www.cobraplc.com

Key Highlights

•The Company is planning to complete 3 exploration programs in the second half of 2020, which will include up to 45 RC holes and up to 6,750m of drilling.

•Prospects to be explored include Baggy Green, Baggy Green North, Clarke, Laker and Larwood.

•While individual programs will focus on specific objectives such as defining the orientation and extensions of mineralisation, the strategic aim is to build towards the Boards initial target of a 1m oz gold resource.

•The Company expects to achieve its Stage 1 50% earn-in shortly after the completion of Program 1.

In Detail:

The Company currently has three exploration programs totalling up to 6750m of Reverse Circulation (RC) drilling and 150 auger soil samples, planned for the remainder of 2020:

• Program 1 – up to 25 holes – 3750m RC Drilling at Baggy Green, Baggy Green North, Laker and Clarke.

• Program 2 – approximately 150 auger Geochem samples at Larwood.

• Program 3 – up to 20 holes – 3000m RC Drilling at Barns and Larwood.

The strategic aim of these programs is to progress resource development of the Wudinna Project towards the Boards initial target of a 1m oz resource, with specific objectives including:

• Confirm orientation and extend the mineralisation at Baggy Green and Barns

• Define orientation and continuity of mineralisation at Clarke / Laker

• Make new gold discoveries at Larwood and Baggy Green North

Significantly, the Company also expects to achieve its Stage 1 earn-in commitment with its JV partner Andromeda Metals Ltd (ASX:ADN) of A$2.1m shortly after the completion of the first program. This will see the Company secure it’s initial 50% stake in the Wudinna Gold project.

Program 1

Hagstrom Drilling have confirmed the rig mobilisation date from Perth as the 21st of September, arriving at Wudinna on the 23rd September.

The Baggy Green JORC(2012) resource estimate is 94,000oz of gold and consists of two zones of sheeted quartz veins, believed to be oriented in a north westerly direction. The current program design includes up to 12 RC holes, with target depths of 150m, testing open mineralisation:

• to the north of the Northern Zone, where open mineralisation grades 1m @ 97g/t and 2m @ 40g/t

• to the south of the southern zone, where four drill intercepts average between 6g/t and 8g/t.

• and in between the northern and southern zones, where there is sufficient room for a third zone of mineralisation.

Nearly a mile to the north of Baggy Green, mineralisation at Clarke includes grades of between 4g/t to 16.4g/t which is not currently included in the Wudinna JORC(2012) resource estimate. Drilling is planned for three 150m RC holes to define the dip and plunge of this mineralisation, which may also be sufficient to define an initial resource.

Up to six RC holes will be drilled at Baggy Green North. This area shows highly anomalous pathfinder geochemistry associated with several regional scale structures. While these holes are still subject to the approval of an “on-going e-PEPR” (see below), they will target new gold discoveries between Baggy Green and the Clarke deposit.

Gold mineralisation at Laker, situated only 11 miles to the east of Baggy Green, includes over 20 gold intercepts in historic drilling, including one stunning intercept of 37.8g/t. During Programme 1, and subject to approval of the Ongoing e-PEPR (see below), 4 RC holes will be drilled to define the orientation of this mineralisation so that further resource definition drilling can be designed.

Program 2

Program 2 is planned to commence in November 2020 as soon as cropping activities in the area are completed.

The Larwood prospect is an exciting geochemical anomaly approximately 33 miles to the east of Baggy Green. It is defined by a trail of alluvial gold that has travelled down a valley from a yet to be identified source. During the Stage 3 pathfinder Geochem completed earlier this year, 1100 soil sample pulps were submitted for multi-element analysis. During Program 2 these samples will be supplemented by a further 150 soil samples upslope (west) of the anomaly to better define RC drilling targets in Program 3.

Program 3

Program 3 is planned to commence late November to early December 2020.

The JORC(2012) resource estimate for the Barns deposit, including White Tank, is 117,000 oz of gold. There are currently three “satellite” pods of mineralisation outside the estimated JORC(2012) resource with grades of between 1g/t to 16.5g/t gold.

The current design for Program 3 will include 20 RC drill holes for a total of 3000m. These holes aim to extend the mineralisation at Barns, which is currently open to the southwest, and also define the continuity of satellite mineralisation to increase the total resource base.

Drilling at Larwood during Program 3 will target geochemical pathfinder hotspots identified following the analysis of the Program 2 sampling.

Ongoing e-PEPR

On the 22nd of May this year the Company submitted an application for an “Ongoing e-PEPR” which when approved will allow the company to explore all of its major target areas without the need for an individual work permit approval (called an e-PEPR) for each drilling program. The Ongoing e-PEPR is a commitment by the Company to operate according to industry best practice with regards to the impact of its operations on the environment, while also providing significant time and cost savings for future drilling programs.

While an ongoing e-PEPR is a complex document, the process is well advanced having cleared all feedback from the Department of Energy and Mining (DEM) and the Department of Environment and Water (DEW). The Company is optimistic that final approval will be received shortly after drilling has commenced at Baggy Green.

COVID-19 Travel Restrictions

Unless there is a significant deterioration in COVID-19 cases either in Western or South Australia, the Company does not expect COVID-19 related travel restrictions will have a significant impact on its planned drilling programs.

Craig Moulton, Director of Cobra commented:

“We are very excited to be able to accelerate our exploration plans and are looking forward to some great results from the initial drilling due to commence later next month. With the recent CLN financing, and expanded agreement with Hagstrom, we now have the financial and operational flexibility to aggressively chase our high-grade gold targets.

I look forward to updating shareholders further as our busy period of drilling gets underway

The person who arranged for the release of this announcement was Craig Moulton, Managing Director of the Company


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